Chia-Hsun Chang, Jingjing Xu, Jingxin Dong and Zaili Yang
Container shipping companies face various risks with different consequences that are required to be mitigated. Limited empirical research has been done on identifying and…
Abstract
Purpose
Container shipping companies face various risks with different consequences that are required to be mitigated. Limited empirical research has been done on identifying and evaluating risk management strategies in shipping operations with different risk consequences. This paper aims to identify the appropriate risk mitigation strategies and evaluate the relative importance of these strategies.
Design/methodology/approach
Literature review and interviews were used to identify and validate the appropriate risk mitigation strategies in container shipping operations. A questionnaire with a Likert five-point scale was then conducted to rank the identified risk mitigation strategies in terms of their overall effectiveness. Top six important strategies were selected to evaluate their relative importance under three risk consequences (i.e. financial, reputation and safety and security incident related loss) through using another questionnaire with paired-comparison. Fuzzy analytic hierarchy process (AHP) was then conducted to analyse the paired-comparison questionnaire.
Findings
After conducting a systematic literature review and interviews, 18 mitigation strategies were identified. The results from the first questionnaire show that among the 18 strategies, the top three are “form alliances with other shipping companies”, “use more advanced infrastructures (hardware and software)” and “choose partners very carefully”. After conducting fuzzy AHP, the results show that shipping companies emphasize more on reducing the risk consequence of financial loss; and “form alliance with other shipping companies” is the most important risk mitigation strategy.
Originality/value
This paper evaluates the risk mitigation strategies against three risk consequences. Managers can benefit from the systematic identification of mitigation strategies, which shipping companies can consider for adoption to reduce the operational risk impact.
Details
Keywords
Hong Men, Bin Sun, Xiao Zhao, Xiujie Li, Jingjing Liu and Zhiming Xu
The purpose of this study is to analyze the corrosion behavior of 304SS in three kinds of solution, 3.5 per cent NaCl, 5 per cent H2SO4 and 1 M (1 mol/L) NaOH, using…
Abstract
Purpose
The purpose of this study is to analyze the corrosion behavior of 304SS in three kinds of solution, 3.5 per cent NaCl, 5 per cent H2SO4 and 1 M (1 mol/L) NaOH, using electrochemical noise.
Design/methodology/approach
Corrosion types and rates were characterized by spectrum and time-domain analysis. EN signals were evaluated using a novel method of phase space reconstruction and chaos theory. To evaluate the chaotic characteristics of corrosion systems, the delay time was obtained by the mutual information method and the embedding dimension was obtained by the average false neighbors method.
Findings
The varying degrees of chaos in the corrosion systems were indicated by positive largest Lyapunov exponents of the electrochemical potential noise.
Originality/value
The change of correlation dimension in three kinds of solution demonstrated significant differences, clearly differentiating various types of corrosion.
Details
Keywords
Jing‐Xin Dong, Jingjing Xu and Dong‐Ping Song
Empty container repositioning is an important issue in the liner shipping industry. Generally stated, two groups of mathematical models have been proposed to tackle this issue…
Abstract
Purpose
Empty container repositioning is an important issue in the liner shipping industry. Generally stated, two groups of mathematical models have been proposed to tackle this issue. The first group aims to derive time‐dependent origin‐destination matrices that specify the number of empty containers to be repositioned at a decision epoch; the second group aims to develop effective state‐feedback control policies consisting of dynamic decision‐making rules. There is, however, a lack of research into the comparison of these two groups, especially with regard to realistic cases subject to uncertainties. The purpose of this paper is to evaluate and compare the performances of some typical repositioning policies from these two groups and to shed light on their relative merits and suitability in various realistic scenarios.
Design/methodology/approach
Based on a literature review, the paper classifies the current empty container repositioning policies into two categories: origin‐destination (OD) based solutions and state‐based dynamic rules. Typical policies are selected from these two categories and then evaluated using a simulation tool. A range of scenarios are designed based on realistic cases considering the stochastic and dynamic nature of liner services. A comprehensive set of simulation experiments are conducted and analysed; and the relative merits and suitability of the repositioning policies are identified.
Findings
Through a carefully designed comparative study, several research findings are obtained with regard to how the performances of different types of empty container repositioning policies are affected by various factors such as structure of service route, uncertainty of daily demands, and parametric optimisation methods.
Originality/value
The study makes a good attempt to analyse the suitability of different empty container repositioning policies in different scenarios. This is an area that has lacked investigation. The research findings can help shipping companies and other relevant stakeholders better understand the relative merits of different empty container repositioning policies and better tackle the challenges in operating the container shipping system.
Details
Keywords
Chia-Hsun Chang, Jingjing Xu and Dong-Ping Song
The purpose of this paper is to explore and analyse the risks in container shipping operations from a logistics perspective. In the paper, risks associated with the three flows in…
Abstract
Purpose
The purpose of this paper is to explore and analyse the risks in container shipping operations from a logistics perspective. In the paper, risks associated with the three flows in logistics − information, physical, and payment flow are identified and analysed.
Design/methodology/approach
The use of case study method was first explained and justified. Second, risk identification was started with supporting references, several interviews were then conducted to identify and validate the potential risks in container shipping operations. A questionnaire was deployed to collect related data; and the impacts of the risks were then assessed and ranked using the method of risk mapping.
Findings
The paper has identified a total of 35 risk factors and classified them into different categories. The paper has also revealed that the risks associated with physical flows have more serious risk impacts than the other types of risks; however, one of the risk factors associated with information flow (shippers hiding cargo information) is the most significant one among all the factors.
Originality/value
Although many studies have been conducted on container shipping operational risks, no studies so far have approached this issue from a perspective that inclusively examines all the possible risks and comprehensively evaluates the relative importance of each of them. This study has identified the risks in container shipping operations, and analysed and ranked the level of these risks. The research further “refines” the findings of some previous studies by placing the risk factors addressed therein in a full “risk picture” which was developed systematically.
Details
Keywords
Robert Mason and Rawindaran Nair
The purpose of this paper is to explore the extent to which supply side flexibility tactics are deployed by operators in the container liner shipping sector in 2009/200 to…
Abstract
Purpose
The purpose of this paper is to explore the extent to which supply side flexibility tactics are deployed by operators in the container liner shipping sector in 2009/200 to restrict supply in a market which is characterised by over‐supply (as well as under demand).
Design/methodology/approach
Taking a case study approach using the Far East‐Europe trade lane, secondary data are reviewed for each type of internal flexibility capability. This is supplemented by a qualitative Delphi‐based research method so that findings are iteratively verified with leading practitioner personnel.
Findings
In 2009, directly after the severe imbalance between demand and supply emerged, liner shipping providing companies were only partially able to exploit the flexibility tactics that were available to them. This improved in 2010 and contributed to an upturn in performance.
Research limitations/implications
Ocean freight logistics provides a vital foundation for contemporary international commerce. However, the viable provision of this service has become significantly more challenging and this research examines why this is the case and what supply side responses are being deployed. Taking a case study approach focussing on 2009/2010 restricts the generalisability of the research that could now be examined on a longer time scale across the whole sector.
Originality/value
This research is novel as there has been no previous research which has looked at the deployment of supply side flexibility tactics in the container liner shipping sector. The findings have considerable bearing on how the industry is run and understood by its providers, customers and regulators.
Details
Keywords
Theo Notteboom and Pierre Cariou
Slow steaming has been implemented by the main liner shipping companies since 2008. The reduction in vessel speed affects fuel consumption and should be reflected within the fuel…
Abstract
Purpose
Slow steaming has been implemented by the main liner shipping companies since 2008. The reduction in vessel speed affects fuel consumption and should be reflected within the fuel surcharges paid by shippers. The purpose of this paper is to assess if this was the case for the main outbound European container trades from the port of Antwerp.
Design/methodology/approach
Through an extensive analysis of liner service characteristics, fuel costs and fuel surcharges this paper provides an answer to three research questions: how significant are slow steaming practices in container liner shipping?; what is the impact of slow steaming on fuel consumption and liner service characteristics?; and to what extent has slow steaming changed the relation between fuel costs and fuel surcharges imposed on shippers by shipping lines?
Findings
It is found that slow steaming practices are not implemented on all trade routes, but depend on operational aspects such as distances covered and the characteristics of the ships deployed. While it could be expected that the reduction in vessel speed should be reflected within the fuel surcharges paid by shippers, the empirical results show that on most trade routes slow steaming did not fundamentally change the relation between fuel costs and fuel surcharges imposed on shippers by shipping lines.
Practical implications
The paper has practical relevance to actors active in global ocean freight logistics, particularly since its results can be used as input for ongoing debates between shipping lines and shippers on pricing and surcharges in container shipping.
Originality/value
This paper is the first extensive study that makes an explicit link between slow steaming practices and fuel surcharge policies of shipping lines. A method was developed to estimate fuel consumption levels of ships at various speeds and to link the associated fuel costs to real‐life bunker surcharges imposed on shippers by shipping lines.
Details
Keywords
In the relevant literature about container terminals (CTs), most studies focused on the internal operational management of CT operators. In practice, for improving the performance…
Abstract
Purposes
In the relevant literature about container terminals (CTs), most studies focused on the internal operational management of CT operators. In practice, for improving the performance of CT operators, the external customers’ requirements should also be considered. The purpose of this paper is to discuss the improvement of service operations of CTs from users’ requirement perspectives.
Design/methodology/approach
In this paper, the customer requirements for container terminal are first examined. Based on the customer requirements, a quality function deployment (QFD) model is then constructed to translate the customer requirements into service operations of the container terminals, by which CT operators may make policies to improve their service operations. As an empirical study, the container terminal of Yang‐Ming Shipping Line (YML CT) at Kaohsiung Port and its users were investigated to validate the model.
Findings
The result proposes 19 customer requirement attributes from users’ perspectives and 15 service operations from CT operators’ perspectives. Further, the top five customer requirement attributes by importance degree are: consistency of bill of lading; accuracy of dynamic information on cargos; accuracy of EDI information for receiving and releasing of containers; professional ability of operators to deal with cargo damage; and cargo safety.
Practical implications
The results indicate the top five service operations in need of improvement for the YML CT are: storage operation in depot; outbound container operation; hazardous container storage; inbound container operation; and T1 arrangement.
Originality/value
In this paper, a QFD model was constructed to improve the service operations of CTs. The proposed model may provide valuable references for future research on container terminals.
Details
Keywords
Alan Harrison and Johannes Fichtinger
The paper aims to explore the relationship between time‐related variables in global ocean transportation networks (GOTNs) and the shipper's inventory management performance. The…
Abstract
Purpose
The paper aims to explore the relationship between time‐related variables in global ocean transportation networks (GOTNs) and the shipper's inventory management performance. The authors modelled fill rates with daily and weekly sailings, and analysed the impact of variability on these on the shipper's inventory management system.
Design/methodology/approach
The authors conducted simulation modelling of the above variables, and supplemented these by means of interviews with executives in a number of liner operators, 3PLs, freight forwarders and a large automotive shipper.
Findings
Improvements in variability have different impacts, depending on the source of the variability and the frequency of the shipments. The highest inventory reduction potential arises from a combination of high reliability and improved frequency.
Practical implications
The paper demonstrates the potential advantages of reduced variability and improved frequency of sailings. Port‐to port (P2P) has been positioned in the context of door‐to‐door (D2D) supply chain movements.
Originality/value
The paper develops clear quantitative analyses of time‐based factors in operating GOTNs.
Details
Keywords
In the aftermath of the financial crisis, flagging behaviour exhibits different features than before. The purpose of this paper is to examine the current ship registration…
Abstract
Purpose
In the aftermath of the financial crisis, flagging behaviour exhibits different features than before. The purpose of this paper is to examine the current ship registration situation and particularly the impact of the 2008 financial crisis on flagging behaviour in light of national characteristics.
Design/methodology/approach
The paper provides an overview of ship registration over the past 14 years and picks up new trends in the changing global economy. Moreover, a panel data analysis is applied to examine flagging in/out on a state by state basis.
Findings
The clear‐cut distinction between national registration and open registration has been diminishing and a convergence has been observed between the two flag types. The sovereignty of states creates a set of regulatory niches. The panel data results show that the flagging behaviour varies from nation to nation. A shipowner's view on choice of flag might be affected by national characteristics, and different continents and ship types tend to exert different influences on flagging out.
Practical implications
It is an oversimplification to assume the downfall of regulation and the rise of liberal deregulation, as different nations have different roles to play in this globalised maritime arena. At some point, an equilibrium may be established whereby the ratio of flagging out would reach a stable plateau within each nation.
Originality/value
This paper identifies the new features of ship registration after the financial crisis. Whereas flagging behaviour has been examined before from many different perspectives, this study approaches the issue from a macroeconomic viewpoint and further elucidates the impact of national states on the globalised phenomenon of the shipping world.